Again these drops are related to legal issues with foreclosure-gate. See below:
"Lenders and servicers have put various temporary holds on foreclosure filings while they work on procedural issues and respond to regulatory and legal challenges," said John Walsh, president of DataQuick. "It’s unclear how much of last quarter’s decline can be attributed to market factors and strategic decisions, and how much can be attributed to the formalities of the foreclosure process."
Based on DataQuick stats, most of the California loans in default were originated between 2005 and 2007 — a peak period for lax underwriting.
I wonder what is going to be the default when the lenders and lender servicers are allowed to process defaults? Will there be more loan modifications by these business entities in the future?
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